For any two – but no more – of the bond features below, explain whether their presence in a bond contract would make the bonds more attractive or less attractive as an investment relative to bonds that lack the feature but are otherwise identical. Explain each answer.
(i) The bond is callable.
(ii) The bond is putable.
(iii) The bond is convertible.
(iv) The bond is a ‘mortgage bond’ rather than a ‘debenture.’
(v) The bond contract contains no covenants.